Omnicom Group Inc (OMC)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 1.70 | 1.99 | 1.93 | 2.03 | 1.76 | 2.19 | 2.03 | 2.02 | 1.69 | 1.97 | 1.93 | 1.99 | 1.69 | 2.15 | 2.64 | 2.23 | 1.91 | 2.28 | 2.07 | 2.15 | |
| DSO | days | 215.14 | 183.41 | 189.56 | 179.98 | 206.83 | 167.01 | 180.19 | 180.84 | 216.42 | 184.84 | 189.44 | 183.54 | 216.53 | 169.59 | 138.21 | 163.99 | 191.10 | 160.41 | 176.41 | 169.76 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 1.70
= 215.14
Omnicom Group, Inc.'s Days Sales Outstanding (DSO) is an important measure of how efficiently the company is managing its accounts receivable. A higher DSO indicates that it takes longer for the company to collect payments from its customers, which could signify potential liquidity issues or inefficiencies in credit and collection processes.
Based on the data provided, Omnicom Group, Inc.'s DSO has been fluctuating over the past eight quarters. In Q4 2023, the DSO stood at 215.14 days, which was higher compared to the previous quarter and the same quarter of the previous year. This increase suggests that the company took longer to collect payments from its customers during this period.
On the other hand, in Q3 2023, the DSO decreased to 183.41 days, showing improvement in collecting payments compared to the preceding quarter. However, it was still higher than the DSO in Q2 2023, indicating a potential issue in managing accounts receivable efficiency.
Looking at the trend over the past year, Omnicom Group, Inc. experienced a peak DSO in Q4 2022 at 206.83 days, followed by a decrease in Q1 and Q2 2023 before rising again in Q3 and Q4 2023. This fluctuation suggests some inconsistency in the company's collection efforts and the need for a closer examination of its credit policies and collection procedures to ensure timely receipt of payments.
Overall, while a certain level of fluctuation in DSO is normal for businesses, Omnicom Group, Inc. should focus on monitoring and improving its accounts receivable turnover to maintain healthy cash flows and operational efficiency.
Peer comparison
Dec 31, 2023